AMERICANS ARE "SUCKERS" WHEN IT COMES TO GIVING
By Gordon Bishop (07/11/07)
Americans are generous, or ignorant, when it comes to giving to those in need around the world.
The United States, both public and private sectors, gave $122.8 billion to the “developing world” in 2005.
Private assistance was $95.2 billion.
Government development assistance was $27.6 billion. That’s taxpayers’ dollars, of course.
The source of these numbers is the Hudson Institute Center for Global Prosperity.
The number 2 giver in the world was Britain at $19.8 billion, followed by Japan, $19.7 billion; Germany, $16.99 billion; France, $17.5 billion. and Canada, $11 billion.
Under $10 billion were: Italy, $8.9 billion; Spain, $8.8; Netherlands, $7.3 billion; Australia, $5.7 billion; Sweden, $4.3 billion; Switzerland, $3.3 billion; Norway, $3.2 billion; Austria, $2.7 billion; Dnmark, $2.6 billion; Belgium, $2.6 billion; Ireland, $1.25 billion; Greece, $1.22 billion; Denmark $1 billion.
Under a billion dollars were: Portugal, $.78 billion; New Zealand, $.69 billion, and Luxembourg, $.33 billion.
Individuals gave $61.7 billion.
Foundations contributed $2.2 billion and corporations donated $5.1 billion.
Private and voluntary organizations (including volunteer time), $16.2 billion.
Universities and colleges gave $4.6 billion.
Religious organizations, $5.4 billion.
All charitable contributions are, of course, tax deductible.
(Personally, I gave most of my donations to my church, which I can then write-off in my next tax filing with the federal and state governments (New Jersey also has an income tax).
I also give small donations of $50 or less to nonprofit news and political organizations, since I’m a nationally syndicated columnist who receives lots of information from these tax-exempt groups and causes.
Much money, little effect
A 2006 study by the Cato Institute – a libertarian think tank – titled “Does Foreign Aid Help?” – concluded, “The empirical evidence on the e effectiveness of foreign aid is discouraging.”
The Cato report found that there were “ambiguous results on whether (government) foreign aid helps or hinders developing countries.”
In fact, “foreign aid has had a negative impact on the democratic stance of developing countries, and on economic growth by reducing investment and increasing government consumption,” said the study.
Another problem is that U.S. government aid is tied u with multiple legal constraints. Food aid purchased with U.S. tax dollars, for example, must be bought from American farmers and shipped on U.S. ships.
Inefficient aid
This makes U.S. food aid far more expensive than if it were bought in the region, and in the event of a drought, it takes much longer to reach those in need. In addition, food aid bought in the region could put money in the pockets of the farmers most in need and prime the local economy.
Corrupt governments are a big problem. In one heartbreaking example, in funds released by Chad’s Ministry of Finance, an African nation, for rural health clinics, only 1 percent reached the intended caretakers. Ninety-nine percent went into the pockets of corrupt officials.
The reality is that development aid has not worked very well at all. It’s best to keep American aid in America for charities that invest almost all of their grants in worthwhile project.
Gordon Bishop
(Printer friendly version) Email: Gordon Bishop
